How much do I need?

Take a 5-Minute Test

The amount of life insurance will vary depending on your personal and family situation. In general, life insurance needs are created whenever you have a change in life events such as a marriage, starting a family or business, or retirement. To determine how much life insurance you really need take this simple test and it’ll help you to develop a solid foundation for financial plan.

Life Insurance Needs Analysis:
Expense
Helpful Hints
Estimated Amount
1. Income Replacement
(Experts recommend 5 - 10 times your annual income)
_________
2. Mortgage/Rent
(Mortgage balance or Annual Rent to retirement)
_________
3. Educational Fund
(Number of children x annual tuition x years of education)
_________
4. Emergency Fund
(25-50% of your annual income)
_________
5. Final Expenses
(Funeral expenses cost approximately $10,000)
_________
6. Cash Needs
(Add parts 1 thru 5) Subtotal
_________
7. Less Liquid Assets
(Cash, savings, checking, retirement funds, annuities investments, existing life insurance policies, etc.)
_________
8. Less Other Assets
(Value of your home, business, real estate and other property less any liabilities)

_________
9. Estimated Life Insurance
Needs
(Total need equals Part 6 minus Parts 7 and 8)
_________ Total